§ 1710.253 - Engineering and cost studies—addition of generation capacity.

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The construction or purchase of additional generation capacity and associated transmission facilities by a power supply or distribution borrower, including the replacement of existing capacity, shall be supported by comprehensive project-specific engineering and cost studies as specified by RUS. The studies shall cover a period from the beginning of the project to at least 10 years after the start of commercial operation of the facilities.

The studies must include comprehensive economic present-value analyses of the costs and revenues of the available self-generation, load management, energy conservation, and purchased-power options, including assessments of service reliability and financing requirements and risks. Requirements for analyzing purchased-power options are set forth in § 1710.254.

Generally, studies of self-generation, load management, and energy conservation options shall include, as appropriate, analyses of:

Capital and operating costs;

Financing requirements and risks;

System reliability;

Alternative unit sizes;

Alternative types of generation;

Fuel alternatives;

System stability;

Load flows; and

System dispatching.

At the request of a borrower, RUS, in its sole discretion, may waive specific requirements of this section if such requirements imposed a substantial burden on the borrower and if such waiver will not significantly affect the accomplishment of the objectives of this subpart.

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§ 1710.252 - Construction work plans—power supply borrowers.

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§ 1710.254 - Alternative sources of power.